To close the conference, Japan and African heads of state and government adopted the Nairobi Declaration, which pledged Japan’s support for the region’s efforts at economic structural reform and diversification; health system strengthening and the management of infectious diseases; and promotion of social stability and counterterrorism measures. President Uhuru Kenyatta of Kenya expressed gratitude to the conference’s organizers, declaring that “TICAD has evidently elevated the quality of life right across the continent of Africa and brought very critical focus on African development to the wider international community.”

As many observers applauded Japan’s efforts to advance engagement with sub-Saharan Africa, others including Mr. Zhang Ming, China’s vice-minister for foreign affairs, offered a dose of skepticism regarding the conference’s outcomes, stating “There is a never shortage of conferences and promises for Africa, and yet action and implementation have not always followed… We hope Africa’s partners will honor their commitments with real actions and deliver tangible fruits to the African people.” A recent blog post by AGI Nonresident Fellow Yun Sun, Rising Sino-Japanese competition in Africa, offers further insight on China and Japan’s growing competition in Africa as business and development partners with the region, arguing that “China should look inward on how to improve its own contributions in Africa rather than point fingers at other countries for doing more.”

Author

Research Analyst and Project Coordinator - Africa Growth Initiative

Mark Zuckerberg visits tech startups in Nigeria and Kenya

This week, Facebook CEO and creator Mark Zuckerberg made a surprise visit to Lagos, kicking off his first trip to sub-Saharan Africa. He started his tour in Yaba, referred to as the “Nigerian Silicon Valley,” where he visited the Co-Creation Hub, a local innovation center, and met with kids attending a summer coding camp. He also connected with the developer behind Lifebank, an app (developed within the Co-Creation Hub) used to locate available blood supplies and transport them to hospitals in need. He also visited Andela—an African startup that trains young developers in Africa—in which the Chan Zuckerberg initiative invested $24 million last June. He also visited Afrinolly, a Nollywood movie studio. Zuckerberg praised the Nigerian film industry as “one of the best resources in the world for African content.”

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** Violence erupts after Gabon’s election commission announces a close win for incumbent President Bongo
On Wednesday, August 31, Gabon’s interior ministry declared incumbent President Ali Bongo, son of former long-ruling president Omar Bongo, the winner of last week’s election, spurring supporters of the opposition candidate, Jean Ping, to protest. The race was extremely tight, with only 5,594 votes separating the candidates. Bongo won 49.80 percent of the vote while Ping won 48.23 (Gabon has a one-round, first-past-the-post presidential election). Protests have been immediate and intense, with tear gas and stun grenades used as protestors attempted to storm the election commission’s offices. By Wednesday night protesters had set the parliament building on fire. By Thursday night, 1,000 people had already been arrested, three had been killed, and widespread looting had occurred in the capital Libreville. According to The Guardian, the headquarters of Ping’s opposition party have been stormed and bombed by Gabon’s presidential guard. In addition, Quartz Africa reports that the government has shut down the internet.
Many of Ping’s supporters were caught by surprise, as Ping had declared himself the winner earlier in the week before the official decision had been announced. Indeed, some questions linger: According to al-Jazeera, the largest discrepancy seems to be in the province of Haut-Ogooue, which reported a turnout of over 99 percent—compared to the country average of 59.46 percent—as well as a 95.5 percent win for Bongo.
The international community has expressed concern over the protests and security response, urged calm, and asked for greater transparency in the results. The European Union, which monitored Gabon’s election, has called for the country to release the results of all the polling stations. Similarly, France released a statement saying, “We think it is necessary to publish the results of all the polling stations. The credibility of the election as well as Gabon's international reputation are at stake.” The U.S. Embassy in Gabon also stated—via Facebook—that the election did experience “many systemic deficiencies and irregularities,” and has echoed France’s call for transparency in the results.
Nairobi TICAD VI builds support between African and Japanese leaders
Japan’s Sixth Tokyo International Conference on African Development (TICAD VI) was held for the first time within sub-Saharan Africa, in Nairobi, Kenya on August 27 and 28, 2016. An estimated 10,000 delegates participated in TICAD VI—including 36 heads of state or their representatives from 54 African countries and Japan, as well as representatives from the African Union, United Nations, and other countries—to discuss deepening Africa-Japan partnerships in six critical areas for African development (as identified during TICAD V): economic growth, infrastructure development, agriculture and farming, peace and security, and social inclusivity.
At the opening of TICAD VI, Prime Minister Shinzo Abe of Japan committed to spending $30 billion in Japanese public and private sector investment in Africa over the next three years to boost infrastructure development, stating, “This is an investment that has faith in Africa's future, an investment for Japan and Africa to grow together.” Meanwhile, at least 75 Japanese businesses attended the conference to exhibit their products and promote trade and investment ties with African countries, and 73 memorandums of understanding were signed throughout the two-day event.
To close the conference, Japan and African heads of state and government adopted the Nairobi Declaration, which pledged Japan’s support for the region’s efforts at economic structural reform and diversification; health system strengthening and the management of infectious ... ** Violence erupts after Gabon’s election commission announces a close win for incumbent President Bongo
On Wednesday, August 31, Gabon’s interior ministry declared incumbent President Ali Bongo, son of former long-ruling president ... https://www.brookings.edu/blog/africa-in-focus/2016/08/18/figure-of-the-week-oil-price-projections-help-shape-african-economic-diversification-efforts/Figure of the week: Oil price projections help shape African economic diversification effortshttp://webfeeds.brookings.edu/~/181739104/0/brookingsrss/topics/kenya~Figure-of-the-week-Oil-price-projections-help-shape-African-economic-diversification-efforts/
Thu, 18 Aug 2016 18:55:45 +0000https://www.brookings.edu/?p=328087

Overall, commodity price levels remain far below the March 2012 peak preceding the price slump of 2014-2015—although commodity markets have experienced a slight rebound since March 2016. The International Monetary Fund projects that all commodity and energy price indices will remain relatively stable over the next five years, with a minor climb hardly reapproaching peak levels. For these reasons, some African countries are continuing to diversify their economic activities away from commodities such as oil. Others are opting to take advantage of the recent small, but not insignificant climb in commodity prices.

Veteran oil exporter aims to address dependency

Lower commodity prices, and more specifically, depressed fuel prices, have had a powerful effect on countries that depend on oil for their fiscal revenues. Gabon, for instance, whose oil sector accounted for 70 percent of exports and 40 percent of budget revenue in 2015, has seen its revenues and GDP drop dramatically from the falling oil prices (see figure below). Gabon continues to have one of the highest GDP per capita values in Africa, however, this is largely due to its relatively small population of just over 1.6 million people. Although poverty statistics are sparse, according to a 2016 report by the IMF, approximately a third of Gabon’s citizens live below the poverty line, and unemployment rates currently stand at just under 30 percent.

The decline in oil revenue has had negative effects on the ordinary citizens, with total unemployment rates rising approximately 10 percent post commodity slump. In response, Gabon is advocating for palm oil production and the end of the country’s dependence on oil. Ali Bongo, president of Gabon, recently signed three deals worth $4.5 billion with several Asian companies, utilizing the foreign capital to establish new factories and plantations. Among the initiatives to employ Gabonese workers are the development of 100,000 hectares of palm oil trees by the Singapore-based company Olam, as well as banning the export of raw logs (one of the country’s main exports) to make sure the materials are transformed in country.

New oil-exporting nations consider path ahead

By 2017, both Kenya and Uganda will begin exporting oil in an attempt to diversify their respective economies. Kenya seeks to lower its dependence on agriculture and tourism, as President Uhuru Kenyatta and the cabinet approved an oil commercialization plan by the Ministry of Energy. Kenya will begin by exporting 2,000-4,000 barrels a day by road and rail to Mombasa for refining until a pipeline projected to pump 100,000 barrels per day is completed between Lokichar and Lamu (estimated completion in 2021). Petroleum is Kenya’s current single biggest import commodity—at 14 percent of the import bill—and the hope is that reducing this expenditure will translate into more robust foreign currency reserves, and therefore a stronger Kenyan shilling. Although doubts have been raised around the high cost of logistics and the economic viability of the export plan, Kenya has confirmed crude oil reserves of 750 million barrels, enough to keep the pipeline in use for 2 years before exploration firms must discover new oil reserves.

Meanwhile Uganda is planning to export oil to the Indian Ocean using a pipeline that runs through Tanzania. Uganda has more than double the confirmed reserves of Kenya, with 1.7 billion barrels of recoverable reserves in the Lake Albert Basin. Although initial talks of a joint oil pipeline project with Kenya fell through, Uganda and Kenya still plan to work together on other regional projects including a railway from Uganda to Kenya’s coastal city of Mombasa.

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https://www.brookings.edu/wp-content/uploads/2016/08/angola_oil001.jpg?w=270
Update to Figure 6. Commodity Price Indices of the July AGI Markets Monitor.
Overall, commodity price levels remain far below the March 2012 peak preceding the price slump of 2014-2015—although commodity markets have experienced a slight rebound since March 2016. The International Monetary Fund projects that all commodity and energy price indices will remain relatively stable over the next five years, with a minor climb hardly reapproaching peak levels. For these reasons, some African countries are continuing to diversify their economic activities away from commodities such as oil. Others are opting to take advantage of the recent small, but not insignificant climb in commodity prices.
Veteran oil exporter aims to address dependency
Lower commodity prices, and more specifically, depressed fuel prices, have had a powerful effect on countries that depend on oil for their fiscal revenues. Gabon, for instance, whose oil sector accounted for 70 percent of exports and 40 percent of budget revenue in 2015, has seen its revenues and GDP drop dramatically from the falling oil prices (see figure below). Gabon continues to have one of the highest GDP per capita values in Africa, however, this is largely due to its relatively small population of just over 1.6 million people. Although poverty statistics are sparse, according to a 2016 report by the IMF, approximately a third of Gabon’s citizens live below the poverty line, and unemployment rates currently stand at just under 30 percent.
The decline in oil revenue has had negative effects on the ordinary citizens, with total unemployment rates rising approximately 10 percent post commodity slump. In response, Gabon is advocating for palm oil production and the end of the country’s dependence on oil. Ali Bongo, president of Gabon, recently signed three deals worth $4.5 billion with several Asian companies, utilizing the foreign capital to establish new factories and plantations. Among the initiatives to employ Gabonese workers are the development of 100,000 hectares of palm oil trees by the Singapore-based company Olam, as well as banning the export of raw logs (one of the country’s main exports) to make sure the materials are transformed in country.
New oil-exporting nations consider path ahead
By 2017, both Kenya and Uganda will begin exporting oil in an attempt to diversify their respective economies. Kenya seeks to lower its dependence on agriculture and tourism, as President Uhuru Kenyatta and the cabinet approved an oil commercialization plan by the Ministry of Energy. Kenya will begin by exporting 2,000-4,000 barrels a day by road and rail to Mombasa for refining until a pipeline projected to pump 100,000 barrels per day is completed between Lokichar and Lamu (estimated completion in 2021). Petroleum is Kenya’s current single biggest import commodity—at 14 percent of the import bill—and the hope is that reducing this expenditure will translate into more robust foreign currency reserves, and therefore a stronger Kenyan shilling. Although doubts have been raised around the high cost of logistics and the economic viability of the export plan, Kenya has confirmed crude oil reserves of 750 million barrels, enough to keep the pipeline in use for 2 years before exploration firms must discover new oil reserves.
Meanwhile Uganda is planning to export oil to the Indian Ocean using a pipeline that runs through Tanzania. Uganda has more than double the confirmed reserves of Kenya, with 1.7 billion barrels of recoverable reserves in the Lake Albert Basin. Although initial talks of a joint oil pipeline project with Kenya fell through, Uganda and Kenya still plan to work together on other regional projects including a railway from Uganda to Kenya’s coastal city of Mombasa.
Tor Syvrud contributed to this post.
Related Content Africa in focus
AGI Markets Monitor: Brexit’s impact on Africa, ... Update to Figure 6. Commodity Price Indices of the July AGI Markets Monitor.
Overall, commodity price levels remain far below the March 2012 peak preceding the price slump of 2014-2015—although commodity markets have experienced a ... https://www.brookings.edu/blog/order-from-chaos/2016/07/25/obamas-legacy-in-african-security-and-development/Obama’s legacy in African security and developmenthttp://webfeeds.brookings.edu/~/181021716/0/brookingsrss/topics/kenya~Obama%e2%80%99s-legacy-in-African-security-and-development/
Mon, 25 Jul 2016 16:36:00 +0000http://www.brookings.edu?p=174153&preview_id=174153President Obama’s presidency has witnessed widespread change throughout Africa. What legacy will he leave on the continent?

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President Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s importance—even if he arguably hasn’t been able to devote the resources he might have wished, given the myriad of competing demands. African countries face a range of challenges on trade, investment, and development, as well as on security and stability.

O’Hanlon observed that Africa’s 54 countries have, on the whole, seen reasonably high economic growth rates in the past two decades. There’s been a slight decline recently, due in part to reduced demand for commodities in China. Trends in the spread of democracy have followed a similar path. The continent’s population is also continuing to grow rapidly. Security threats have eased in some places, he said, and intensified in others. Besides a few regional conflicts and human rights issues—some quite significant—the continent is arguably showing more promise than at any previous time, yet recent years have seen some reversals.

Obama’s policies in Africa

Margon highlighted some strengths and weaknesses of Obama’s policy in Africa. Strengths, in her view, include that the Obama administration:

Improved governance and democracy through strong messaging;

Balanced counterterrorism and civil rights, without letting the former dominate the latter;

Made human rights and LGBT issues a clear priority;

Carried out the Africa Leader’s Summit and the “Power Africa” electricity initiative, with modestly promising results; and

Used social media to engage local populations.

Weaknesses, Margon argued, were that the administration:

Focused on security assistance in ways that gave somewhat less priority to governance issues at times, at least in terms of U.S. financial resources, and aligned the United States with authoritarian regimes in several cases;

Provided inconsistent follow-up towards crisis response in Guinea, Nigeria, and the Central African Republic, among other places; and

Failed to hold governments accountable for human rights violations in places like Ethiopia.

A closer look at Kenya

Obama’s relationship with Africa is particularly challenging because of his Kenyan heritage, Carotenuto argued. He noted that Obama was sensitive to charges of favoritism and to critiques that he might be too focused on the continent of his relatives and his late father. In the United States, the “birther conspiracy” garnered a good deal of media attention, he said, and delayed Obama’s visit to Kenya until 2015. On the other hand, once Obama did go—he was the first sitting American president to do so—he was well-received because of his diaspora tie.

Obama has managed to nurture ties with Kenya despite the political turbulence in the country, Carotenuto continued. Kenya’s 2007 elections sparked a period of post-election violence, during which more than 1,300 people were killed. Current President Uhuru Kenyatta and Deputy President William Ruto have since been tried by the International Criminal Court for human rights violations during that time, and during their trials attempted to deflect blame by painting the ICC and the Obama administration as neo-colonial institutions favoring the opposition party. Since then, according to Carotenuto, there has been a rise in authoritarianism in Kenya, with increased restrictions on freedom of the press and a rise in human rights abuses. To further complicate matters, he added, al-Shabab has become a rising security threat for Kenya. Although the United States first began conducting drone strikes against the group in June 2011—with a Kenyan military intervention in Somalia following shortly after—there has been little effort to engage local development issues in Kenya’s northeast, where many Somalis live. This, combined with President Kenyatta’s recent decision to close the Dadaab refugee camp (which would displace 300,000 people), has caused greater insecurity, according to Carotenuto. At the same time, Kenya has made progress in other areas: for example, it passed a very progressive constitution in 2010.

Across the continent, meanwhile, Nigeria faces similar security threats from Boko Haram—but U.S. policies between Kenya and Nigeria vary greatly. Prior to Nigerian President Muhammadu Buhari’s presidency, Washington put more pressure on Nigeria than on Kenya to reform, Carotenuto said. Kenya has generally not been held accountable, as the United States has continued to support its fight against al-Shabab.

Authoritarians, term limits, and popular sovereignty

As Margon explained, there has been a dramatic expansion of security assistance across the board in Africa. That can be problematic when the aid supports countries with authoritarian regimes like Rwanda and Uganda. Margon was particularly disappointed with Obama’s 2015 visit to Ethiopia. She believes Obama has failed to hold Ethiopia accountable, particularly after a 2009 counterterrorism law led to a clampdown on civil society.

Carotenuto and Margon also addressed the issue of long-term leaders like President Kagame of Rwanda, President Kabila of the Democratic Republic of Congo, and President Museveni of Uganda. All have used—and in some cases abused—the election process to allow themselves to stay in power. This has not just weakened the political system, in their views, but damaged citizens’ autonomy. Countries like Uganda, where a president has been in power for many years, see more violations of basic human rights, Margon observed. Carotenuto pointed to 2014 Afrobarometer data suggesting that Africans overwhelmingly support democracy; promoting term limits is not just an American or Western project.

Overall, the participants agreed that the effects of Obama’s legacy in Africa have not yet been fully manifested. The fact that Barack Obama was the first African-American elected to be president in U.S. history will not necessarily make his legacy in Africa particularly historic.

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UncategorizedPresident Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s importance—even if he arguably hasn’t been able to devote the resources he might have wished, given the myriad of competing demands. African countries face a range of challenges on trade, investment, and development, as well as on security and stability.
What legacy will Obama leave on the continent? On July 19, the Africa Security Initiative hosted a discussion on President Obama’s legacy in Africa, featuring Matthew Carotenuto, professor at St. Lawrence University and author of “Obama and Kenya: Contested Histories and the Politics of Belonging,” and Sarah Margon, Washington director at Human Rights Watch. Brookings Senior Fellow Michael O’Hanlon moderated the conversation.
O’Hanlon observed that Africa’s 54 countries have, on the whole, seen reasonably high economic growth rates in the past two decades. There’s been a slight decline recently, due in part to reduced demand for commodities in China. Trends in the spread of democracy have followed a similar path. The continent’s population is also continuing to grow rapidly. Security threats have eased in some places, he said, and intensified in others. Besides a few regional conflicts and human rights issues—some quite significant—the continent is arguably showing more promise than at any previous time, yet recent years have seen some reversals.
Obama’s policies in Africa
Margon highlighted some strengths and weaknesses of Obama’s policy in Africa. Strengths, in her view, include that the Obama administration:
- Improved governance and democracy through strong messaging; - Balanced counterterrorism and civil rights, without letting the former dominate the latter; - Made human rights and LGBT issues a clear priority; - Carried out the Africa Leader’s Summit and the “Power Africa” electricity initiative, with modestly promising results; and - Used social media to engage local populations.
Weaknesses, Margon argued, were that the administration:
- Focused on security assistance in ways that gave somewhat less priority to governance issues at times, at least in terms of U.S. financial resources, and aligned the United States with authoritarian regimes in several cases; - Provided inconsistent follow-up towards crisis response in Guinea, Nigeria, and the Central African Republic, among other places; and - Failed to hold governments accountable for human rights violations in places like Ethiopia.
A closer look at Kenya
Obama’s relationship with Africa is particularly challenging because of his Kenyan heritage, Carotenuto argued. He noted that Obama was sensitive to charges of favoritism and to critiques that he might be too focused on the continent of his relatives and his late father. In the United States, the “birther conspiracy” garnered a good deal of media attention, he said, and delayed Obama’s visit to Kenya until 2015. On the other hand, once Obama did go—he was the first sitting American president to do so—he was well-received because of his diaspora tie.
Obama has managed to nurture ties with Kenya despite the political turbulence in the country, Carotenuto continued. Kenya’s 2007 elections sparked a period of post-election violence, during which more than 1,300 people were killed. Current President Uhuru Kenyatta and Deputy President William Ruto have since been tried by the International Criminal Court for human rights violations during that time, and during their trials attempted to deflect blame by painting the ICC and the Obama administration as neo-colonial institutions favoring the opposition party. Since then, according to Carotenuto, there has been a rise in authoritarianism in Kenya, with ... President Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s importance—even if he arguably hasn’https://www.brookings.edu/events/president-obamas-role-in-african-security-and-development/President Obama’s role in African security and developmenthttp://webfeeds.brookings.edu/~/171794376/0/brookingsrss/topics/kenya~President-Obama%e2%80%99s-role-in-African-security-and-development/
Tue, 12 Jul 2016 14:50:34 +0000https://www.brookings.edu/events/president-obamas-role-in-african-security-and-development/

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Barack Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s potential and importance. African countries face many challenges that span issues of trade, investment, and development, as well as security and stability. With President Obama’s second term coming to an end, it is important to begin to reflect on his legacy and how his administration has helped frame the future of Africa.

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Barack Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s potential and importance. African countries face many challenges that span issues of trade, investment, and development, as well as security and stability. With President Obama’s second term coming to an end, it is important to begin to reflect on his legacy and how his administration has helped frame the future of Africa.
On July 19, the Center for 21st Century Security and Intelligence at Brookings hosted a discussion on Africa policy. Matthew Carotenuto, professor at St. Lawrence University and author of “Obama and Kenya: Contested Histories and the Politics of Belonging” (Ohio University Press, 2016) discussed his research in the region. He was joined by Sarah Margon, the Washington director of Human Rights Watch. Brookings Senior Fellow Michael O'Hanlon partook in and moderated the discussion. Barack Obama’s presidency has witnessed widespread change throughout Africa. His four trips there, spanning seven countries, reflect his belief in the continent’s potential and importance. African countries face many challenges that ... https://www.brookings.edu/blog/africa-in-focus/2016/05/27/africa-in-the-news-nigeria-establishes-flexible-exchange-rate-kenya-reaffirms-plan-to-close-dabaab-refugee-camp-and-afdb-meetings-focus-on-energy-needs/Africa in the news: Nigeria establishes flexible exchange rate, Kenya reaffirms plan to close Dabaab refugee camp, and AfDB meetings focus on energy needshttp://webfeeds.brookings.edu/~/181753540/0/brookingsrss/topics/kenya~Africa-in-the-news-Nigeria-establishes-flexible-exchange-rate-Kenya-reaffirms-plan-to-close-Dabaab-refugee-camp-and-AfDB-meetings-focus-on-energy-needs/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=106967&preview_id=106967

Kenya threatens to close the Dadaab refugee camp, the world’s largest

Earlier this month, Kenya announced plans to close the Dadaab refugee camp, located in northeast Kenya, amid security concerns. The move to close the camp has been widely criticized by international actors. United States State Department Press Relations Director Elizabeth Trudeau urged Kenya to “uphold its international obligations and not forcibly repatriate refugees.” The United Nations High Commissioner for Refugees stated that the closure of the refugee camp would have “devastating consequences.” Despite these concerns, this week, at the World Humanitarian Summit, Kenya stated that it will not go back on its decision and confirmed the closure of the refugee camps within a six-month period.

From May 23-27, Lusaka, Zambia hosted 5,000 delegates and participants for the 2016 Annual Meetings of the African Development Bank (AfDB), with the theme, “Energy and Climate Change.” Held in the wake of December’s COP21 climate agreement and in line with Sustainable Development Goals 7 (ensure access to affordable, reliable, sustainable and modern energy for all) and 13 (take urgent action to combat climate change and its impacts), the theme was timely and, as many speakers emphasized, urgent. Around 645 million people in Africa have no access to electricity, and only 16 percent are connected to an energy source. To that end, AfDB President Akinwumi Adesina outlined the bank’s ambitious aim: “Our goal is clear: universal access to energy for Africa within 10 years; Expand grid power by 160 gigawatts; Connect 130 million persons to grid power; Connect 75 million persons to off grid systems; And provide access to 150 million households to clean cooking energy.”

As part of a push to transform Africa’s energy needs and uses, Rwandan President Paul Kagame joined Kenyan President Uhuru Kenyatta on a panel to support the AfDB’s “New Deal on Energy” that aims to deliver electricity to all Africans by 2025. Kenyatta specifically touted the potential of geothermal energy sources. Now, 40 percent of Kenya’s power needs come from geothermal energy sources, he said, but there is still room for improvement—private businesses, which make up 30 percent of Kenya’s on-grid energy needs, have not made the switch yet.

As part of the meetings, the AfDB, the Organization for Economic Cooperation and Development (OECD), and United Nations Development Program (UNDP) also launched their annual African Economic Outlook, with the theme “Sustainable Cities and Structural Transformation.” In general, the report’s authors predict that the continent will maintain an average growth of 3.7 percent in 2016 before increasing to 4.5 percent in 2017, assuming commodity prices recover and the global economy improves. However, the focus was on this year’s theme: urbanization. The authors provide an overview of urbanization trends and highlight that successful urban planning can discourage pollution and waste, slow climate change, support better social safety nets, enhance service delivery, and attract investment, among other benefits.

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Uncategorized
Nigeria introduces dual exchange rate regime
On Tuesday, May 24, Nigerian Central Bank Governor Godwin Emefiele announced that the country will adopt a more flexible foreign exchange rate system in the near future. This move signals a major policy shift by Emefiele and President Muhammadu Buhari, who had until this point opposed calls to let the naira weaken. Many international oil-related currencies have depreciated against the dollar as oil prices began their decline in 2014. Nigeria, however, has held the naira at a peg of 197-199 per U.S. dollar since March 2015, depleting foreign reserves and deterring investors, who remain concerned about the repercussions of a potential naira devaluation. Following the announcement, Nigerian stocks jumped to a five-month high and bond prices rose in anticipation that a new flexible exchange rate regime would increase the supply of dollars and help attract foreign investors.
For now it remains unclear exactly what a more flexible system will entail for Nigeria, however, some experts suggest that the Central Bank may introduce a dual-rate system, which allows select importers in strategic industries to access foreign currency at the current fixed rate, while more generally foreign currency will be available at a weaker, market-related level. This new regime raises a number of questions, including how it will be governed and who will have access to foreign currency (and at what rate). On Wednesday, Nigeria’s parliament requested a briefing soon from Emefiele and Finance Minister Kemi Adeosun to provide additional clarity on the new system, although the date for such a meeting has not yet been set.
Kenya threatens to close the Dadaab refugee camp, the world’s largest
Earlier this month, Kenya announced plans to close the Dadaab refugee camp, located in northeast Kenya, amid security concerns. The move to close the camp has been widely criticized by international actors. United States State Department Press Relations Director Elizabeth Trudeau urged Kenya to “uphold its international obligations and not forcibly repatriate refugees.” The United Nations High Commissioner for Refugees stated that the closure of the refugee camp would have “devastating consequences.” Despite these concerns, this week, at the World Humanitarian Summit, Kenya stated that it will not go back on its decision and confirmed the closure of the refugee camps within a six-month period.
The camp houses 330,000 refugees, a majority of whom fled from conflict in their home country of Somalia. Kenya insists that the camp poses a threat to its national security, as it believes the camp is used to host and train extremists from Somalia’s Islamist group al-Shabab. Kenya also argued that the developed world, notably the United Kingdom, should host its fair share of African refugees. This is not the first time Kenya has threatened to close the refugee camp. After the Garissa University attacks last April, Kenya voiced its decision to close the refugee camps, although it did not follow through with the plan.
African Development Bank Meetings highlight energy needs and launch the 2016 African Economic Outlook
From May 23-27, Lusaka, Zambia hosted 5,000 delegates and participants for the 2016 Annual Meetings of the African Development Bank (AfDB), with the theme, “Energy and Climate Change.” Held in the wake of December’s COP21 climate agreement and in line with Sustainable Development Goals 7 (ensure access to affordable, reliable, sustainable and modern energy for all) and 13 (take urgent action to combat climate change and its impacts), the theme was timely and, as many speakers emphasized, urgent. Around 645 million people in Africa have no access to electricity, and only 16 percent are connected to an energy source. To that end, AfDB President Akinwumi Adesina outlined the bank’s ambitious aim: “Our goal is ...
Nigeria introduces dual exchange rate regime
On Tuesday, May 24, Nigerian Central Bank Governor Godwin Emefiele announced that the country will adopt a more flexible foreign exchange rate system in the near future.https://www.brookings.edu/blog/future-development/2016/05/16/three-myths-about-china-in-kenya/Three myths about China in Kenyahttp://webfeeds.brookings.edu/~/181028740/0/brookingsrss/topics/kenya~Three-myths-about-China-in-Kenya/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=96978&preview_id=96978

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In recent years, China’s presence in sub-Saharan Africa has risen rapidly. Many fear that China spells doom for the Kenyan economy. Producers of manufactured goods, for example, face more competition from China in both foreign and domestic markets. Others argue that China will exploit Kenya’s resources and leave it unable to industrialize. If the manufacturing sector fails to take off, it will be harder to move people out of poverty.

But China also benefits Kenya. It finances key infrastructure and construction projects such as the standard gauge railway or the port at Lamu Island, and offers affordable and diverse products for consumers. Kenyan retailers benefit from greater profits by selling low-cost chinese products like plastic shoes or motorbikes. And even if local producers may struggle, critics often overlook the boon to consumers from China.

Kenya exports little to China because it hasn’t exported much in general: The export to GDP ratio actually declined between 2005 and 2012, far from the norm for other high growth economies. Kenyan manufacturers must pay higher transport costs and contend with a climbing real exchange rate, making goods less competitive on global markets. In turn, Kenya’s exports fall, hurting net exports and resulting in a negative overall trade balance. So if Kenya, for example, makes it easier for Omo (a popular domestic brand of washing powder) to produce, Kenya will export more to the world, not just to China.

And consumers now have greater variety and choice. Someone looking for a budget smartphone can pick up a Huawei phone for around Ksh 6,000 (about $60). A mitumba trader can boost profits by buying a bale of shoes from China for half of what they would cost if sourced locally. Moreover, since small shops still constitute up to 70 percent of retail shops, retailers importing goods for resale appear to have benefited on a large scale from Chinese products.

Myth 2: China brings in all of its own people

According to a 2014 survey by the Sino Africa Centre of Excellence Foundation, Chinese companies hire Kenyans for 78 percent of full-time and 95 percent of part-time roles, and 93 percent of companies report hiring Kenyan employees. Chinese companies also increasingly hire more Kenyans: They had 102 full-time local employees upon establishment and, by the time of the survey, had hired 214 full-time local employees. Sixty-three percent of companies reported having a policy of replacing Chinese employees with Kenyans because of being much cheaper to hire a local technician.

The same survey reveals Chinese companies have created nearly 2,200 direct jobs, which is equivalent to 5.3 percent of the total jobs created through foreign direct investment. Most of these jobs are in automotive original equipment manufacturing, metals, and especially communications supporting thestrong performance of the sector.

China and India also take the lead in job creation. China ranks fifth overall and India is number one with just over 7,400 jobs from foreign direct investment. Hence, China, and India are not only important sources of trade and investment, but new jobs as well.

Figure 1: Total FDI job creation by country

Myth 3: China just exploits natural resources

Chinese companies are spread across almost every major sector of the economy, operating in the manufacturing, services, and construction sectors. Chinese investment is more than just state-owned companies negotiating directly with the government, and Chinese firms have taken interest in more than natural resources in Kenya. Aside from metals, in 2014, the communications sector received $150 million in investment from China, and the automotive original equipment manufacturing received $68 million.

Many private Chinese companies are looking to access the domestic market or to produce goods for export to other countries. A number of small and medium-sized enterprises are attracted to the manufacturing and service sectors, and larger companies are drawn to construction. Some bid for projects from China’sMinistry of Commerce and receive support based on performance; others raise capital from family and friends in China. Meanwhile, state-owned firms can access subsidized credit from the China export-import bank. But the size, operations, and financing of Chinese firms is quite diverse, something often overlooked when discussing Chinese investment in the country.

But despite many problems, China’s involvement in Kenya is a net positive, as most trade relations in the world tend to be. If Kenya leverages Chinese know-how and uses relatively cheap imports to satisfy the basic needs of the population, it could at the same time jump start its export engine in areas of comparative advantage such as tea, cut flowers, or chemicals. That would make trade for both China and Kenya even more of a win-win.

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https://www.brookings.edu/wp-content/uploads/2016/07/kenya_chineseworker001.jpg?w=256UncategorizedIn recent years, China’s presence in sub-Saharan Africa has risen rapidly. Many fear that China spells doom for the Kenyan economy. Producers of manufactured goods, for example, face more competition from China in both foreign and domestic markets. Others argue that China will exploit Kenya’s resources and leave it unable to industrialize. If the manufacturing sector fails to take off, it will be harder to move people out of poverty.
But China also benefits Kenya. It finances key infrastructure and construction projects such as the standard gauge railway or the port at Lamu Island, and offers affordable and diverse products for consumers. Kenyan retailers benefit from greater profits by selling low-cost chinese products like plastic shoes or motorbikes. And even if local producers may struggle, critics often overlook the boon to consumers from China.
We investigate some persistent myths about China in Kenya in our paper “Deal or No Deal: Strictly Business for China in Kenya?” Let’s start with the three big ones.
Myth 1: China is deliberately flooding the market with cheap products and destroying Kenya’s economy
When people learn of the bilateral trade deficit between China and Kenya, they usually react with alarm. But Germany also has a large bilateral trade deficit with China and seems to be doing just fine. What matters is the overall trade balance. Nobel laureate Robert Solow once remarked, I have a chronic trade deficit with my barber, who doesn’t buy a darned thing from me. As long as he balances his books and saves, his personal deficits are irrelevant.” Similarly, a country focuses on its trade balance for its balance of payments; country to country deficits are irrelevant.
Kenya exports little to China because it hasn’t exported much in general: The export to GDP ratio actually declined between 2005 and 2012, far from the norm for other high growth economies. Kenyan manufacturers must pay higher transport costs and contend with a climbing real exchange rate, making goods less competitive on global markets. In turn, Kenya’s exports fall, hurting net exports and resulting in a negative overall trade balance. So if Kenya, for example, makes it easier for Omo (a popular domestic brand of washing powder) to produce, Kenya will export more to the world, not just to China.
And consumers now have greater variety and choice. Someone looking for a budget smartphone can pick up a Huawei phone for around Ksh 6,000 (about $60). A mitumba trader can boost profits by buying a bale of shoes from China for half of what they would cost if sourced locally. Moreover, since small shops still constitute up to 70 percent of retail shops, retailers importing goods for resale appear to have benefited on a large scale from Chinese products.
Myth 2: China brings in all of its own people
According to a 2014 survey by the Sino Africa Centre of Excellence Foundation, Chinese companies hire Kenyans for 78 percent of full-time and 95 percent of part-time roles, and 93 percent of companies report hiring Kenyan employees. Chinese companies also increasingly hire more Kenyans: They had 102 full-time local employees upon establishment and, by the time of the survey, had hired 214 full-time local employees. Sixty-three percent of companies reported having a policy of replacing Chinese employees with Kenyans because of being much cheaper to hire a local technician.
The same survey reveals Chinese companies have created nearly 2,200 direct jobs, which is equivalent to 5.3 percent of the total jobs created through foreign direct investment. Most of these jobs are in automotive original equipment manufacturing, metals, and especially communications supporting thestrong performance of the sector.
China and India also take the lead in job creation. China ranks fifth overall and India is number one with just over 7,400 jobs from foreign direct investment. ... In recent years, China’s presence in sub-Saharan Africa has risen rapidly. Many fear that China spells doom for the Kenyan economy. Producers of manufactured goods, for example, face more competition from China in both foreign and domestic ... https://www.brookings.edu/blog/africa-in-focus/2016/03/25/africa-in-the-news-kenya-and-uganda-discuss-oil-pipeline-route-nigerias-central-bank-raises-interest-rate-and-south-africas-zuma-faces-gupta-probe/Africa in the news: Kenya and Uganda discuss oil pipeline route, Nigeria’s Central Bank raises interest rate, and South Africa’s Zuma faces Gupta probehttp://webfeeds.brookings.edu/~/181753544/0/brookingsrss/topics/kenya~Africa-in-the-news-Kenya-and-Uganda-discuss-oil-pipeline-route-Nigeria%e2%80%99s-Central-Bank-raises-interest-rate-and-South-Africa%e2%80%99s-Zuma-faces-Gupta/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=106869&preview_id=106869

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Proposed change in East African pipeline route is crux of Kenya and Uganda discussions

After the discovery of nearly 1.7 billion barrels of recoverable oil reserves in Uganda’s Lake Albert Basin nine years ago, Uganda signed a deal in February 2014 with three international oil firms—France’s Total SA, the UK’s Tullow, and China’s CNOOC—to build an oil refinery and a pipeline for exporting the oil via port on the Indian Ocean. Last year, Kenya and Uganda agreed upon broader plans for the pipeline’s route, proposing to direct the conduit through Kenya’s Lake Turkana oilfields and ultimately to a port in Lamu, Kenya. The port in Lamu is currently under construction and comprises part of the $26 billion Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) project—a trade corridor intended to be operational in 2018 when Uganda intends to begin exporting oil.

More recently, however, Uganda has called to reroute the pipeline through Tanzania’s port of Tanga, stating that research performed by the international oil companies shows that the Tanzanian route is cheaper: Only $4 billion compared to $4.5 billion for the Kenyan route. The studies also suggest that the construction of a pipeline through Kenya would likely encounter delays due to tricky land compensation battles as well as security issues from attacks by al-Shabaab. Tanzanian President John Magufuli has enthusiastically and publically supported Uganda’s new proposition to route the pipeline through Tanzania. While this week’s meeting between the Kenya’s President Uhuru Kenyatta and Uganda’s President Yoweri Museveni was meant to bring some clarity to the final pipeline route, the two leaders agreed defer the decision and reconvene in two weeks so that their officials could have a chance to “harmonize” their views.

In other Nigeria news, the House of Representatives and the Senate passed the 2016 budget on Wednesday after months of political quarreling. Amid falling oil prices and declining oil revenues (which make up two-thirds of government funding), the budget proposed by President Muhammadu Buhari in December was reduced slightly from N6.08 trillion ($30.6 billion to N6.06 trillion ($30.5 billion) in its final form. Despite the amendment to reduce the budget, some experts still argue that the budget is too high and that financing government spending and managing the $15 billion deficit will be a major task for Buhari’s administration.

President Jacob Zuma’s relationship with Gupta family is to be examined by South Africa’s graft ombudsman

These allegations come at a time of economic challenges for the country. After the abrupt dismissal of Nene in December followed by the four-day tenure of a little-known policymaker (both moves that sent South African markets reeling), former and now-current Finance Minister Pravin Gordhan faces nervous investors and a declining rand. At the same time, South Africa also faces a potential downgrading of its credit to junk—a fear and possibility heightened by this political commotion.

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Uncategorized
Proposed change in East African pipeline route is crux of Kenya and Uganda discussions
Issues surrounding the route of an East African oil pipeline remain unresolved despite Monday’s meeting between the Kenyan and Ugandan heads of state.
After the discovery of nearly 1.7 billion barrels of recoverable oil reserves in Uganda’s Lake Albert Basin nine years ago, Uganda signed a deal in February 2014 with three international oil firms—France’s Total SA, the UK’s Tullow, and China’s CNOOC—to build an oil refinery and a pipeline for exporting the oil via port on the Indian Ocean. Last year, Kenya and Uganda agreed upon broader plans for the pipeline’s route, proposing to direct the conduit through Kenya’s Lake Turkana oilfields and ultimately to a port in Lamu, Kenya. The port in Lamu is currently under construction and comprises part of the $26 billion Lamu Port Southern Sudan-Ethiopia Transport (LAPSSET) project—a trade corridor intended to be operational in 2018 when Uganda intends to begin exporting oil.
More recently, however, Uganda has called to reroute the pipeline through Tanzania’s port of Tanga, stating that research performed by the international oil companies shows that the Tanzanian route is cheaper: Only $4 billion compared to $4.5 billion for the Kenyan route. The studies also suggest that the construction of a pipeline through Kenya would likely encounter delays due to tricky land compensation battles as well as security issues from attacks by al-Shabaab. Tanzanian President John Magufuli has enthusiastically and publically supported Uganda’s new proposition to route the pipeline through Tanzania. While this week’s meeting between the Kenya’s President Uhuru Kenyatta and Uganda’s President Yoweri Museveni was meant to bring some clarity to the final pipeline route, the two leaders agreed defer the decision and reconvene in two weeks so that their officials could have a chance to “harmonize” their views.
Central Bank of Nigeria increases benchmark interest rate
On Tuesday, Nigeria’s central bank increased its benchmark lending rate to 12 percent from 11 percent. The rate hike comes just four months after the bank reduced the rate by 2 percent in an attempt to help boost its ailing economy. In light of this week’s rate increase, some analysts claim that the November reduction was premature. Others argue that the central bank’s latest decision reflects a shift in focus from promoting economic growth to managing inflation, which has spiked to 11.4 percent—its highest rate in over three years. The central bank hopes that by establishing a higher interest rate it will reduce the amount of cash available to consumers, thus potentially reigning in inflation.
In other Nigeria news, the House of Representatives and the Senate passed the 2016 budget on Wednesday after months of political quarreling. Amid falling oil prices and declining oil revenues (which make up two-thirds of government funding), the budget proposed by President Muhammadu Buhari in December was reduced slightly from N6.08 trillion ($30.6 billion to N6.06 trillion ($30.5 billion) in its final form. Despite the amendment to reduce the budget, some experts still argue that the budget is too high and that financing government spending and managing the $15 billion deficit will be a major task for Buhari’s administration.
President Jacob Zuma’s relationship with Gupta family is to be examined by South Africa’s graft ombudsman
On Tuesday, South Africa’s Public Protector Thuli Madonsela announced plans to look into whether Zuma’s relationship with the wealthy and influential Gupta family might have breached the Executive Members Act. While Zuma has vehemently denied the accusations and the ruling African National Congress (ANC) ...
Proposed change in East African pipeline route is crux of Kenya and Uganda discussions
Issues surrounding the route of an East African oil pipeline remain unresolved despite Monday’s meeting between the Kenyan and Ugandan heads of ... https://www.brookings.edu/opinions/the-skyscraper-and-the-shack-what-slum-policy-should-not-be-about/The skyscraper and the shack: What slum policy should not be abouthttp://webfeeds.brookings.edu/~/171794380/0/brookingsrss/topics/kenya~The-skyscraper-and-the-shack-What-slum-policy-should-not-be-about/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=83041&post_type=opinion&preview_id=83041Vanda Felbab-Brown writes that after decades of neglect, Latin American governments are increasingly focusing on urban slums, often out of a desire to counter violent criminality. But instead of being limited to the provision of alternative residences, policies to address slums need to be about inclusion, economic growth, safety, and connectivity of slums with the thriving city parts, and accountability of city-governance authorities, explains Felbab-Brown.

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After decades of neglect, Latin American governments are increasingly focusing on urban slums. What often spurs their policy interventions is a desire to counter violent criminality leaking out from the poor marginalized slums controlled by gangs into the city centers the better-off residents want to keep safe. But tackling the socioeconomic dynamics of slums — the trap of poverty, discrimination, lack of public goods and social services, and rule by nonstate actors — is not only complex, but also costly. Governments, elites, and middle classes tend not to want to spend resources on slums. Effective policies have to be sustained for decades, and political will and tax revenues for such complex state-building are frequently scarce.

Focusing on a discreet intervention – providing low-cost housing – becomes tempting. Rarely is it sufficient. The condition of the buildings alone is not what makes a slum a slum. Moving residents from slums to better low-cost housing has encountered systematic challenges not just in Latin America, but also in other places where it has been tried, such as Kenya. Instead, policies need to focus on broader community dynamics, including public safety, legal job creation with sufficient income, human capital development, and robust connectivity of slums to economically-thriving areas, something residents of the latter often don’t want.

Paradoxically, real estate dynamics can have pernicious effects. If broader pacification does take hold and public safety in slums increases, some slum areas can become desirable real estate with vast development possibilities. Developers may well seek to buy the land by offering “better” low-cost housing to slum residents to get them to move. Since many slum residents do not have title to their residences, forced displacement also occurs, albeit under the cloak of being nice to the poor.

Instead of being limited to the provision of alternative residences, policies to address slums need to be about inclusion, economic growth, safety, and connectivity of slums with the thriving city parts, and accountability of city-governance authorities.

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After decades of neglect, Latin American governments are increasingly focusing on urban slums. What often spurs their policy interventions is a desire to counter violent criminality leaking out from the poor marginalized slums controlled by gangs into the city centers the better-off residents want to keep safe. But tackling the socioeconomic dynamics of slums — the trap of poverty, discrimination, lack of public goods and social services, and rule by nonstate actors — is not only complex, but also costly. Governments, elites, and middle classes tend not to want to spend resources on slums. Effective policies have to be sustained for decades, and political will and tax revenues for such complex state-building are frequently scarce.
Focusing on a discreet intervention – providing low-cost housing – becomes tempting. Rarely is it sufficient. The condition of the buildings alone is not what makes a slum a slum. Moving residents from slums to better low-cost housing has encountered systematic challenges not just in Latin America, but also in other places where it has been tried, such as Kenya. Instead, policies need to focus on broader community dynamics, including public safety, legal job creation with sufficient income, human capital development, and robust connectivity of slums to economically-thriving areas, something residents of the latter often don’t want.
Paradoxically, real estate dynamics can have pernicious effects. If broader pacification does take hold and public safety in slums increases, some slum areas can become desirable real estate with vast development possibilities. Developers may well seek to buy the land by offering “better” low-cost housing to slum residents to get them to move. Since many slum residents do not have title to their residences, forced displacement also occurs, albeit under the cloak of being nice to the poor.
Instead of being limited to the provision of alternative residences, policies to address slums need to be about inclusion, economic growth, safety, and connectivity of slums with the thriving city parts, and accountability of city-governance authorities.
This commentary was originally published by the Inter-American Dialogue’s Latin America Advisor. After decades of neglect, Latin American governments are increasingly focusing on urban slums. What often spurs their policy interventions is a desire to counter violent criminality leaking out from the poor marginalized slums controlled by gangs ... https://www.brookings.edu/blog/africa-in-focus/2016/01/29/africa-in-the-news-south-sudan-faces-inflation-post-float-kenya-contends-with-eurobond-scandal-and-africa-sees-acute-rise-in-childhood-obesity/Africa in the news: South Sudan faces inflation post-float, Kenya contends with eurobond scandal, and Africa sees acute rise in childhood obesityhttp://webfeeds.brookings.edu/~/181028742/0/brookingsrss/topics/kenya~Africa-in-the-news-South-Sudan-faces-inflation-postfloat-Kenya-contends-with-eurobond-scandal-and-Africa-sees-acute-rise-in-childhood-obesity/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=106796&preview_id=106796Africa in the News, Amy Copley recaps the top news stories, including South Sudan's inflationary pressures; Kenya's eurobond scandal; and the rise in childhood obesity.

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Inflationary pressures follow devaluation in South Sudan

Prices of food and commodities in South Sudan (almost all of which are imported), have shot up following the effective devaluation of the country’s currency last month. On December 15, the government of South Sudan decided to float the South Sudanese pound (SSP) in response to the slump in global crude oil prices (which account for about 95 percent of the country’s foreign currency revenues). Following the announcement, the SSP fell to its market rate of 18.50 SSP to the dollar compared to its previously pegged rate of 2.96 SSP to the dollar. This devaluation of over 84 percent has set in place hyperinflation of 109.9 percent according to a recent report by the country’s national bureau of statistics.

The resulting impact of skyrocketing import prices is not just faced by consumers, but also by businesses. For instance, the country’s first beverage company, the Juba-based South Sudan Beverages, a subsidiary of the U.K.-based giant SABMiller, announced last week that that it would stop production by mid-March because the devaluation has led to an acute shortage of the foreign currency necessary to buy its essential imported raw materials.

However, reports suggest these economic pressures have aided the recent decision to reopen the border with Sudan, which is expected to allow flows of cheaper goods into the country. The border was closed in 2011 when relations between the two nations deteriorated after South Sudan declared independence. In the meantime, Finance Minister David Deng Athorbe reassured the public that the government is taking necessary steps to curb inflation—including a reducing custom taxes on imported food items and increasing of domestic food production.

For more information on the implications of South Sudan’s move to a floating currency, refer to Amadou Sy’s blog here.

Kenyan Central Bank denies charges of $1 billion eurobond theft

This week the Kenyan Central Bank defended itself against claims leveled by Raila Odinga, leader of the opposition party, that the institution stole nearly $1 billion of the $2.82 billion raised in Kenya’s first eurobond sale in 2014.The funds were meant to be raised in order to pay off a syndicated loan and finance a number of electricity generation and infrastructure projects. Odinga alleges, though, that $999 million of the funds were never transferred from U.S. financial institutions to Kenya’s public funds account. Finance Minister Henry Rotich, on the other hand, argues that all funds have been accounted for, although, since eurobond proceeds were distributed directly to different ministries to use on a variety of projects, the specifics of exactly what funds were disbursed to each project remains unclear without a thorough audit. Still, some Kenyans are calling on U.S. Attorney General Loretta Lynch through a White House petition to assist in determining exactly where the money went since U.S. financial institutions JP Morgan Chase and the New York Federal Reserve facilitated the eurobond transactions.

Meanwhile, President Uhuru Kenyatta has ramped up efforts to root out corruption in recent months, declaring “zero tolerance” on graft and firing cabinet members charged in corruption scandals. Still, Kenya ranks 139th out of 168 countries in Transparency International’s 2015 Corruption Perceptions Index, which was released earlier this week, for the country’s ineffective anti-corruption agencies, impunity for corrupt individuals, and inability to recover stolen assets.

Childhood obesity is rising in Africa

This week, the World Health Organization (WHO) Commission on Ending Childhood Obesity (ECHO) launched a new report that finds that the prevalence of infant, childhood, and teenage obesity is rising throughout the world. Global childhood obesity increased from 31 million in 1990 to 41 million in 2014—a 32 percent rise. As the world saw a significant increase in childhood obesity, Africa also saw its number of obese children nearly double between 1990 and 2014, from 5.4 million to 10.3 million. The report also highlights the high prevalence of under-five obesity in the continent; 25 percent of all obese children below the age of five live in Africa.

The increase in childhood obesity has been linked to two key factors according to the report: globalization and urbanization. The effects of urbanization on obesity are notably acute in Africa where the recent migration towards the city was accompanied with a change in diets and an increased adoption of the sedentary lifestyle. With globalization came the increased availability of unhealthy food in low-income countries. The report thus called for governments to implement an “effective tax on sugar-sweetened beverages.”

The increase in childhood obesity is actually coupled with high rates of malnutrition and stunting as children are consuming less nutritious food and more fattening food and beverages. As stated in the report, addressing the issue of childhood obesity in cultural settings such as ones present in Africa is challenging, as an overweight child in often perceived as healthy and well-fed.

In other news, U.S. Commerce Secretary Penny Pritzker traveled to Nigeria and Rwanda this week with other members of President Barack Obama’s Advisory Council on Doing Business in Africa. During her trip, she discussed the detrimental effects of foreign exchange controls on U.S. investment in Nigeria, while in Rwanda she reiterated the U.S.’s position on Rwandan President Kagame’s third term bid, stating, “One lesson I have learned during 27 years in the private sector is that senior executives need to foster an environment that encourages ideas and creativity, as well as to plan for leadership transitions that ensure that success is not based on a single leader.”

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Uncategorized
Inflationary pressures follow devaluation in South Sudan
Prices of food and commodities in South Sudan (almost all of which are imported), have shot up following the effective devaluation of the country’s currency last month. On December 15, the government of South Sudan decided to float the South Sudanese pound (SSP) in response to the slump in global crude oil prices (which account for about 95 percent of the country’s foreign currency revenues). Following the announcement, the SSP fell to its market rate of 18.50 SSP to the dollar compared to its previously pegged rate of 2.96 SSP to the dollar. This devaluation of over 84 percent has set in place hyperinflation of 109.9 percent according to a recent report by the country’s national bureau of statistics.
The resulting impact of skyrocketing import prices is not just faced by consumers, but also by businesses. For instance, the country’s first beverage company, the Juba-based South Sudan Beverages, a subsidiary of the U.K.-based giant SABMiller, announced last week that that it would stop production by mid-March because the devaluation has led to an acute shortage of the foreign currency necessary to buy its essential imported raw materials.
However, reports suggest these economic pressures have aided the recent decision to reopen the border with Sudan, which is expected to allow flows of cheaper goods into the country. The border was closed in 2011 when relations between the two nations deteriorated after South Sudan declared independence. In the meantime, Finance Minister David Deng Athorbe reassured the public that the government is taking necessary steps to curb inflation—including a reducing custom taxes on imported food items and increasing of domestic food production.
For more information on the implications of South Sudan’s move to a floating currency, refer to Amadou Sy’s blog here.
Kenyan Central Bank denies charges of $1 billion eurobond theft
This week the Kenyan Central Bank defended itself against claims leveled by Raila Odinga, leader of the opposition party, that the institution stole nearly $1 billion of the $2.82 billion raised in Kenya’s first eurobond sale in 2014.The funds were meant to be raised in order to pay off a syndicated loan and finance a number of electricity generation and infrastructure projects. Odinga alleges, though, that $999 million of the funds were never transferred from U.S. financial institutions to Kenya’s public funds account. Finance Minister Henry Rotich, on the other hand, argues that all funds have been accounted for, although, since eurobond proceeds were distributed directly to different ministries to use on a variety of projects, the specifics of exactly what funds were disbursed to each project remains unclear without a thorough audit. Still, some Kenyans are calling on U.S. Attorney General Loretta Lynch through a White House petition to assist in determining exactly where the money went since U.S. financial institutions JP Morgan Chase and the New York Federal Reserve facilitated the eurobond transactions.
Meanwhile, President Uhuru Kenyatta has ramped up efforts to root out corruption in recent months, declaring “zero tolerance” on graft and firing cabinet members charged in corruption scandals. Still, Kenya ranks 139th out of 168 countries in Transparency International’s 2015 Corruption Perceptions Index, which was released earlier this week, for the country’s ineffective anti-corruption agencies, impunity for corrupt individuals, and inability to recover stolen assets.
Childhood obesity is rising in Africa
This week, the World Health Organization (WHO) Commission on Ending Childhood Obesity (ECHO) launched a new report that finds that the prevalence of infant, childhood, and teenage obesity is rising throughout the world. Global ... Inflationary pressures follow devaluation in South Sudanhttps://www.brookings.edu/blog/africa-in-focus/2015/12/11/africa-in-the-news-kenya-and-ethiopia-ink-200-million-trade-deal-south-african-rand-sinks-to-new-low-and-un-makes-record-20-billion-humanitarian-appeal/Africa in the news: Kenya and Ethiopia ink $200 million trade deal, South African rand sinks to new low, and UN makes record $20 billion humanitarian appealhttp://webfeeds.brookings.edu/~/181028744/0/brookingsrss/topics/kenya~Africa-in-the-news-Kenya-and-Ethiopia-ink-million-trade-deal-South-African-rand-sinks-to-new-low-and-UN-makes-record-billion-humanitarian-appeal/
Mon, 30 Nov -0001 00:00:00 +0000http://www.brookings.edu?p=106636&preview_id=106636Africa in the News, Amy Copley recaps the top news stories, including Kenya and Ethiopia's historic trade and peace deal; the rough road for the rand; and the UN's appeal for the record sum of humanitarian aid.

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Kenya and Ethiopia sign historic trade and peace deal

The Kenya-Ethiopia border region has a long-standing history of power struggles between herding communities over grazing lands, water sources, and other constrained resources, especially as population pressures have intensified in recent years. This week, Kenyan President Uhuru Kenyatta and Ethiopian Prime Minister Haile Mariam Desalegn oversaw the signing of a five-year agreement to jointly develop the borderland regions of Marsabit County in Kenya and Borana Zone in Ethiopia. This deal, called the “Marsabit County/Kenya-Borana Zone/Ethiopia Integrated Cross-border and Area-based Program,” will create a special economic zone within these regions, which will aim to leverage the area’s relatively untapped natural resource base and livestock sector to boost the local economy through industrialization and cross-border trade. It also strives to increase access of basic public goods and services to local communities, including in health and education, in a region that has been largely marginalized from public and private investments in social goods. The deal will be carried out in partnership with the United Nations and the Intergovernmental Authority on Development (IGAD) and will unlock approximately $200 million for the region.

UN appeals for record sum of humanitarian aid

This week, the United Nations launched an appeal for a record sum of humanitarian aid: $20 billion to fund its 2016 operations. The world’s increased demand for humanitarian aid stems in large part from a doubling in the number of highly violent conflicts across the globe and a more than 50 percent increase in the number of refugees and internally displaced people. According to Under-Secretary-General for Humanitarian Affairs Stephen O’Brian, “human suffering has reached levels not seen since the Second World War.” With 125 million people in need of humanitarian aid, the U.N. agencies—the World Health Organization, the Office of the United Nations High Commissioner for Refugees, and the Office for the Coordination of Humanitarian Affairs—are attempting to bring assistance to the most vulnerable, i.e., 87 million people in 37 countries, which include Syria, Yemen, South Sudan, and the Ukraine.

With two-thirds of the funds being allocated towards solving the crisis in Syria, $1.3 billion will be dedicated to resolving the crisis in South Sudan. Other African countries in profound need of assistance according to the U.N. agencies include the Central African Republic, Burundi, and Nigeria, where humanitarian crises have spilled into neighboring countries and taken on a regional dimension.

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Uncategorized
Kenya and Ethiopia sign historic trade and peace deal
The Kenya-Ethiopia border region has a long-standing history of power struggles between herding communities over grazing lands, water sources, and other constrained resources, especially as population pressures have intensified in recent years. This week, Kenyan President Uhuru Kenyatta and Ethiopian Prime Minister Haile Mariam Desalegn oversaw the signing of a five-year agreement to jointly develop the borderland regions of Marsabit County in Kenya and Borana Zone in Ethiopia. This deal, called the “Marsabit County/Kenya-Borana Zone/Ethiopia Integrated Cross-border and Area-based Program,” will create a special economic zone within these regions, which will aim to leverage the area’s relatively untapped natural resource base and livestock sector to boost the local economy through industrialization and cross-border trade. It also strives to increase access of basic public goods and services to local communities, including in health and education, in a region that has been largely marginalized from public and private investments in social goods. The deal will be carried out in partnership with the United Nations and the Intergovernmental Authority on Development (IGAD) and will unlock approximately $200 million for the region.
Rough road for the rand
The market opened this week with the rand at a record low against the dollar due to speculation that a strengthening U.S. economy will speed up the pace at which the Federal Reserve increases interest rates. The forecast for the rand is not any better as the current account deficit widened sharply in the last quarter and the country’s net gold and foreign exchange reserves have also declined since October. Just last week, Fitch Ratings cut South Africa’s credit rating to BBB- from BBB and Standard & Poor’s lowered its outlook to negative. The weakness in the rand spurred fears among investors, making the portfolio investments abroad spike to the biggest quarterly outflow on record. This trend changed by the middle of the week and the rand grew stronger, taking into account that the inflation and retail sales figures in the country had exceeded the estimates. However, this was short-lived as the rand came again plummeted on Thursday following the dismissal of the country's finance minister, Nhalnhla Nene. The new finance minister, David van Rooyen, acknowledged upon his appointment the “colossal” task that awaits him as he seeks to alleviate market fears.
UN appeals for record sum of humanitarian aid
This week, the United Nations launched an appeal for a record sum of humanitarian aid: $20 billion to fund its 2016 operations. The world’s increased demand for humanitarian aid stems in large part from a doubling in the number of highly violent conflicts across the globe and a more than 50 percent increase in the number of refugees and internally displaced people. According to Under-Secretary-General for Humanitarian Affairs Stephen O’Brian, “human suffering has reached levels not seen since the Second World War.” With 125 million people in need of humanitarian aid, the U.N. agencies—the World Health Organization, the Office of the United Nations High Commissioner for Refugees, and the Office for the Coordination of Humanitarian Affairs—are attempting to bring assistance to the most vulnerable, i.e., 87 million people in 37 countries, which include Syria, Yemen, South Sudan, and the Ukraine.
With two-thirds of the funds being allocated towards solving the crisis in Syria, $1.3 billion will be dedicated to resolving the crisis in South Sudan. Other African countries in profound need of assistance according to the U.N. agencies include the Central African Republic, Burundi, and Nigeria, where humanitarian crises have spilled into ...
Kenya and Ethiopia sign historic trade and peace deal
The Kenya-Ethiopia border region has a long-standing history of power struggles between herding communities over grazing lands, water sources, and other constrained resources, especially ...